IS BRAND PROTECTION NECESSARY?

One of the most widely recognised brands in the world today is Coca-Cola. So widely recognised is the brand that it doesn’t even need the words Coca-Cola there for it to be identified. Show anyone an hourglass shaped bottle and very likely the brand Coca-Cola pops into the mind. And there is the unmistakable white swirls over a fire-engine red background. These are part of its brand identity and because of its ability to create instantaneous brand recall, protecting its brand identity is necessary for its survival. Its remarkable achievement in capturing mind share and market share lies in its high visibility.

What is necessary for the continuing long-term survival of a brand is brand protection. This is especially true in Asia where the business culture places great emphasis on companies selling products, rather than brands. Up till now, this has been an extremely successful way of reaping profits. But the long-term answer for greater ROIs would lie in branding.

At present, very few Asian brands succeed in becoming global brands. Some like Sony, Samsung and Panasonic have carved a name for themselves in the field of entertainment. Others like Toyota, Nissan and Honda have successfully penetrated the European and American markets on the strength of their fuel-saving features. But these achievements are only a drop in the ocean when compared to the branding achievements of their western counterparts.

The effects of globalisation cannot be ignored. One of the greatest impacts of globalisation is the flooding of new brands from all over the world into the open markets. The result is a market that becomes saturated with too many brands. Globalisation becomes a reality show as competition becomes stiffer when brands battle it out for the survival of the fittest.

With open tariffs, competition between companies will peak. The implementation of AFTA beginning from 2003 until 2008 is aimed at liberalising trade in services as well as encouraging investments in the ASEAN region. To the business world, this signals a possible rise in me-too brands as imitation becomes the best form of flattery. These names feed off the brand identity and brand personality of established and well-known brands. And one of the best solutions to prevent such me-too brands from flourishing lies in brand protection. Brand protection becomes not an option any more but an essential part of branding.

Brand protection as an essence of brand differentiation assures brand exclusivity. Once a brand is protected, it allows the brand to be differentiated and remain differentiated with less

worry of being successfully imitated. Once this assurance is given, the brand can then generate long term ROI as consumers will be able to differentiate the original from the imitation. Originality gives the brand a marked advantage over its rivals to generate greater mind share and market share to affirm bigger ROIs.

However, protection of intellectual property rights is not the final say in brand protection. To make the brand differentiated, the unique personality, strategies and qualities the brand embraces need to be protected as well. For example, a good brand management and well-trained sales personnel with in-depth knowledge can become elements of the brands USP and ESP.

So, how does Coca-Cola protect itself? By remaining differentiated. By realising in 1916 that the original straight-sided bottle was easily confused with imitators, Coca-Cola had the Root Glass Company of Terre Haute, Indiana design a bottle that has become an international icon of one of the world’s most identified brands. The Contour Bottle, as it is officially known, is one of the few packages the US Patent Office has ever granted trademark status (www.coca-cola.com). The recipe for Coca-Cola is also one of the world’s most guarded corporate secrets. One reason why it has only recently penetrated the Indian market in 1993 is because of its continuous refusal to indulge its secret ingredients. Its refusal to do so has successfully protected its brand.

Starbucks aims to be the best coffee people around. Its objective is to be established as the world’s most recognised and respected brand. In order to do so, it has to protect its brand. Starbucks believes that to have leverage, it must introduce new products like its Frappuccino® to help differentiate its brand. It protects its brands by differentiating itself, purchasing and roasting only high-quality whole bean coffees and selling them along with fresh, rich-brewed, Italian style espresso beverages. Consumers see Starbucks as coffee people who take the business of coffee very seriously. This creates respect, gaining mind share and market share. By protecting its brand through offering only the best in coffee, Starbucks has been recognised one of the “Ten Most Admired Companies in America” (FORTUNE Magazine 2003, 2004 and 2005).

Coca-Cola and Starbucks are aware of the many factors that contribute to the long-term success of their brands. One of them is of course the awareness that brand protection will help secure long-term revenue.

To protect your brand,
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